Property Manager · SF Bay Area, CA · Member since 2014 · 46 posts · 16 votes
Hi there! I'm Ally, and I was born and raised in the SF Bay Area of California. Although I've read quite a bit on RE investing, I have yet to make the jump with the primary reason being that I've been focused on my military career in the past few years and have not lived where I want to be in the long-term future.
I'm most interested in buy-and-hold properties (SFHs and multi-units) in locations where I see myself returning to and/or staying long-term, so primarily in the Bay Area and Honolulu (actually PCSing there in a few months for a guaranteed stay of at least several years) right now. Hawaii seems to be one of the most difficult markets to start out with, so we'll see how that goes:).
Definitely look at doing a Duplex then with VA when you get out there. Live in one, rent the other one out, and then rent the second one out when you PCS to your next base. Wash, Rinse, and Repeat!
Definitely look at doing a Duplex then with VA when you get out there. Live in one, rent the other one out, and then rent the second one out when you PCS to your next base. Wash, Rinse, and Repeat!
I'm an Agent/Investor/Air Force Reserve O-3 in Oahu! It's funny because you just so happens that you live in some of the most expensive RE markets in the country. It'll be difficult to find anything cheap. More money is required raising the risk level. But being in a Hot Hawaii market that sells it self, active military with great pay, and with drive in RE investing you can certainly press forward with acquiring good cash flow/appreciation based investment property. You can buy and hold using your 0% down VA loan as long and live in the property at least 1 year which is what I did with my vacation rental. I recommend buying on island ASAP, local economies project Median SFH prices to reach $800,000 in a few years...Currently Median SFHs are $629,500. Historical data has shown SFH prices double every 10-15 years. Foreign investors from Asia, newly opened air routes, and increased marketing are boosting visitor rates...Every day 38 people come to Hawaii to plant their flag! Hopefully you can dig in an make some serious money!
Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having 50 past ones to catch up on.
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info.
Consider checking out HUD homes for small multi's owner occupied gets first crack.
You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.
Troy & Joe definitely have the right idea; I have helped others do that exact thing here in HI. If you ever have any questions about financing or about specific properties/areas, don't hesitate to let me know. I am here and also on LinkedIn.
@Troy Fisher @Joe Sillaman @Nathan Wilkus @Paul Timmins: Thank you for all of the great advice!
I must admit that despite being used to RE prices in the Bay Area, the SFH prices in Honolulu make me pretty hesitant to make that my first buy. I was looking at condos, specifically in the Salt Lake area, but I really, really hate the idea of always having condo-associated fees that I have minimal control over. For those familiar with the Honolulu market, what do you think about SFH vs condos there?